A lawyer from Texas has found a way of taking a big chunk from the finances of the laptop computer industry. All he did was to file a lawsuit against a company on behalf of consumers over a nonexistent problem. Do not joke about this, especially if you are involved the laptop computer market. Price increases may result from the fact that copycat lawsuits have also been filed against other companies as well.
A $ 2 billion settlement was reached by a lawyer representing 5 million consumers and a Japanese appliance maker after the former filed a $ 9 billion lawsuit. Since the risk of losing more money was great if they tried to battle the lawsuit, the company decided on a settlement.
Because of this, he and a group of lawyers would get around $ 147 million in contingency fees. Millions of owners were also given cash rebates and discount coupons by the computer manufacturer. Laptop owners became the plaintiffs of this lawsuit filed last March.
Corruption or loss of data because of a design flaw was the testimony given by these two men. The damages that these men claimed could be caused by the flaw did not even affect them in any way.
The Japanese corporation which makes the chip, said it never has received a single consumer complaint about the alleged defect. Not one customer ever complained about the products of the Japanese company until the lawsuit was filed by the two lawyers. According to the company, there was no occurrence of loss of data during their laboratory tests.
Losing to the lawsuit in the trial court would have meant a loss much greater than just $ 9 billion for the Japanese company. Many legal observers claim that the case was easily defensible and that the company’s surrender was dropping meat with blood into the waters of the Gulf of Mexico. The sharks were there before the sound of the splash disappeared. Personal injury lawyers did the same thing, filing copycat lawsuits against five computer manufacturers who may have used the NEC floppy control chip.
Layoffs are becoming a possibility now that these businesses are being hit by copycat lawsuits. Situations may become even worse. The billion dollar settlements may cause prices of personal computers to go down, stated a New York financial analyst. Falling computer prices have contributed to the low inflation rate in the United States, making it enjoy prosperity for the past two decades.
For a few hundred dollars, it is possible to buy low priced yet efficient computers that work better than those that cost $ 5,000 two decades ago. If more laptop manufacturers are threatened by lawsuits in the same manner as the Japanese company, computer prices are sure to go way higher. This is not good news for those who are struggling financially.